Loading ...When you’re a big company like Northrop Grumman, you need a lot of help to make business happen. This is better accomplished by employing an intricate supply chain. But what is the chain like, and what is the role of composite companies in this network?
Lisa Kohl, Vice President for Global Supply Networks for NGAS, says there are about 1,500 companies in their supply chain and the type of companies within that network run the gamut. From procurement, subcontracting, design work, quality assurance, goods movement, transportation, and strategic sourcing.
So how do potential suppliers get in on the action? Start off by submitting some basic information to NGAS, detailing services your company performs. “The only way a company gets turned down at this point is if NGAS already has enough suppliers doing the same exact thing as you. Otherwise, NGAS will perform an audit” says Kohl. “We do a financial verification, which has been a big thing lately. We do a whole analysis and supplier assessment.”
If a supplier passes that test, the company will receive requests for proposals for in-house work. But it’s not enough to just get on the list; NGAS will also evaluate the supplier’s performance. Companies are rewarded for strong work; four consecutive quarters of performing well from a quality and delivery perspective results in placement in the platinum program, which leads to broader access for job opportunities.
But companies can also fall off the list if they receive failing marks for only two consecutive quarters. Kohl points to such items such as late deliveries, quality issues, and an inability to deliver to plan as the biggest reasons for expulsion. “Those signs indicate a deeper problem in the process. We realize everyone can have schedule issues, and they do from time to time, but quality issues in particular can’t be tolerated.”
